Policies

Prohibition of the export of nickel ore

Last updated: 19 March 2024

Through successive policies implemented between 2009 and 2019, the Indonesian government has, as of late April 2022, progressively banned the export of nickel ore, requiring nickel to be processed domestically for export. The export of nickel ore was first outlawed as early as January 2014, and while some ore with concentration below 1.7% could legally be exported between January 2017 and December 2019, any export of nickel ore has been banned as of January 2020.

The aim of this policy is to strengthen domestic processing facilities, bring back the added value of nickel’s supply chain to the Indonesian economy and spur job creation and economic development in Indonesia.

The policies that implemented this ban are the following (in chronological order):

  • Law Number 4/2009 on Coal and Mining.
  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 7/2012 concerning increasing added value of minerals through processing and refining of minerals activities of 6 February 2012.
  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 11/2012 amending Regulation of the Minister of Energy and Mineral Resources Number 7/2012 of 16 May 2012.
  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 20/2013 amending Regulation of the Minister of Energy and Mineral Resources Number 7/2012 of 1 August 2013.
  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 1/2014 concerning increasing added value of minerals through domestic processing and refining of minerals activities of 11 January 2014.
  • Regulation of the Minister of Trade of the Republic of Indonesia Number 1/2017 concerning export provisions for processed and purified mining products of 9 January 2017.
  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 25/2018 concerning mineral and coal mining business of 3 May 2018.
  • Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 11/2019 amending Regulation of the Minister of Energy and Mineral Resources Number 25/2018 of 28 August 2019.
  • Regulation of the Minister of Trade of the Republic of Indonesia Number 96/2019 on export provisions for processed and purified mining products of 30 December 2019.

Indonesia is now facing a lawsuit from the European Union over allegations that such regulations violate the 1994 General Agreement on tariffs and Trade of which Indonesia is a signatory.

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